Question

Protectionism is often used as a measure to enhance the manufacturing and sales of goods domestically. For this discussion, you will need to research one specific element of protectionism. In your post, you will define the element of protectionism and share your example of how it is being used in the country that you researched.

Answer 1

What Is Protectionism?

Protectionism refers to government policies that restrict international trade to help domestic industries. Protectionist policies are usually implemented with the goal to improve economic activity within a domestic economy but can also be implemented for safety or quality concerns

What is a Tariff?

A tariff is a tax imposed by one country on the goods and services imported from another country.

Tariffs are used to restrict imports by increasing the price of goods and services purchased from another country, making them less attractive to domestic consumers. There are two types of tariffs: A specific tariff is levied as a fixed fee based on the type of item, such as a $1,000 tariff on a car. An ad-valorem tariff is levied based on the item's value, such as 10% of the value of the vehicle.

EU Common Agricultural Policy (CAP). Despite reforms and some reduction in tariff rates, the EU still impose substantial tariff rates on many agricultural markets. The aim is to increase prices for domestic European farmers in order to increase their income.

Some selected tariffs on EU agricultural products including:

For medium/ low-quality wheat, a duty of €12 per tonne. Barley, a tariff of €16 per tonne. Oats, €89 per tonne,

Beef tariff or ‘Hilton Quota’ The EU’s current quota 37,800 tonnes – charged 20% import duty. Above, the quota, the duty is much higher: €2,700–€4,700 per tonne